HANSAPANK

COMMENTARY TO FINANCIAL RESULTS



LATVIAN HANSABANKA'S UNAUDITED FINANCIAL RESULTS, 6M 2001



A/s Hansabanka’s result for the first six months of 2001 was a LVL 2.7

million profit. The bank’s assets increased by 46.2% to LVL 470.3

million during the period.



Over the last 12 months (June 01 vs June 00) Hansabanka’s clients’

deposits increased by 38.7% to LVL 360.9 million at the end of June

2001. Demand deposits increased by 10.6% and term deposits increased

by 98.8%. Through deposit growth, the bank’s assets grew by 46.2% or

LVL 148.5 million amounting to LVL 470.3 million at the end of June.



Hansabanka’s loan portfolio increased by 57.5% year-on-year to LVL

187.9 million. As of June 30 total loans formed just 52.1% of clients’

deposits and the net loan portfolio formed 39.1% of total assets

(45.5% in the beginning of the year). Allowance for credit losses

totalled LVL 4.26 million at the end of June, forming 2.27% of the

loan portfolio.



During the first half of the year Hansabanka earned a net profit of

LVL 2.7 million, which exceeds last year’s same period result by 7.6%.

For the first six months the bank’s revenues amounted to LVL 14.92

million, up by 33.0% from last year’s same period. Of this LVL 6.79

million was formed by non-interest income and LVL 8.13 million by net

interest income. The bank’s operating expenses amounted to LVL 10.0

million, which is 40.1% higher than a year ago.



As at June 30, 2001 1 LVL = 29.03875 EEK





Mart Tõevere

Head of investor relations

+372 6131 569